Pakistan’s Struggle: Shehbaz Sharif’s Government Faces Financial Challenges
In July, Pakistan’s government, led by Prime Minister Shehbaz Sharif, received only USD 436.4 million in foreign assistance and grants, a significant drop from the USD 2.89 billion received in the same month last year. This comes as the country awaits a USD 7 billion bailout from the IMF.
The Economic Affairs Division reported that most of the funds came from project financing, which also saw a decline. The government aims for USD 19.4 billion in foreign assistance for FY25, but last year’s target was missed by 54%.
Doubts Revealed
Pakistan -: Pakistan is a country in South Asia, located next to India. It has a population of over 220 million people.
Shehbaz Sharif -: Shehbaz Sharif is the Prime Minister of Pakistan. He is the leader of the government and makes important decisions for the country.
USD -: USD stands for United States Dollar, which is the currency used in the United States. It is often used in international trade and finance.
foreign assistance -: Foreign assistance means help or money given by other countries to Pakistan. This can be used for projects like building schools or hospitals.
grants -: Grants are sums of money given by one country to another that do not need to be paid back. They are like gifts to help with specific needs.
bailout -: A bailout is financial help given to a country or company that is in trouble. It helps them to avoid going bankrupt or failing.
IMF -: IMF stands for International Monetary Fund. It is an organization that helps countries with financial problems by giving them loans and advice.
Economic Affairs Division -: The Economic Affairs Division is a part of the government in Pakistan that deals with financial matters, including foreign assistance and project financing.
project financing -: Project financing is money given specifically for certain projects, like building roads or schools. It is used to complete these projects successfully.
FY25 -: FY25 stands for Fiscal Year 2025. A fiscal year is a one-year period that governments use for accounting and budget purposes.